ARA Closes Two JV Equity Raises and Three Acquisition Financings

ARA closes a series loans in Texas; Carroll Companies completes a disposition in South Carolina with help from HFF: and NorthMarq Capital arranges $15.51 million in mortgages for two properties.

Hermann Park Plaza

Houston—ARA has raised $15 million in equity and $70 million in debt through its Capital Markets group led by Houston-based Adam Allen. The joint venture equity raises consisted of:

  • Hermann Park Plaza, a 204-unit community located at 5745 Almeda Rd. in Houston’s Medical Center submarket. The borrower was MM Properties with equity coming from a large private equity fund.
  • Palms at Walnut Creek, a 283-unit value-add acquisition built in 1999 located in north central Austin. The borrower was Allen Harrison Co. with equity coming from a mid-market private equity fund.

ARA also sourced acquisition financing for three multifamily properties, which the company also sold:

  • Broadstone Westway Park

    Parc Royal, a 171-unit, 1994-built asset located at 2727 Elmside Road in The Westchase District of Houston. ARA originated a 10-year, fixed-rate loan through Freddie Mac in conjunction with KeyBank and represented Allen Harrison Co. the transaction.

  • Broadstone Uptown and Broadstone Westway, a 223-unit property built in 2003 in the Galleria submarket of Houston and a 336-unit property located in Westway Business Park in Houston. ARA originated a 12-year, fixed-rate loan through Fannie Mae in conjunction with KeyBank, and represented Centennial Holdings in the transaction.

HFF sells a 314-unit asset in South Carolina

Greenville, S.C.—Carroll Companies has completed its disposition of Candleton Village with a little help from Holliday Fenoglio Fowler who marketed the property. A partnership between Hudson Capital Investments and RW Partners acquired the asset for an undisclosed amount free and clear of existing debt.

“Candleton Village presents the unique opportunity for increased revenue potential from renovating unit interiors with relatively new systems in-place,” says Megan Thompson, director at HFF. “The property’s location on Woodruff Road amongst Greenville’s most compelling new developments solidifies its position as one of the most centrally located apartment communities.”

The 2006-built property is located at 741 Woodruff Road near the intersection of I-85 and -385, near Greenville Downtown Airport.

NorthMarq arranges $15.51M in mortgages for two properties

Brampton Lane in Cary, N.C.—Greg Duvall, senior vice president and managing director of NorthMarq’s Kansas City regional office, arranged first mortgage refinancings in the amount of $15.51 million for two market-rate multifamily properties containing a total of 376 units.

Brampton Moors, a 224-unit multifamily property located at 101 Brampton Lane in Cary, N.C., was financed at $10.79 million.

Cross Creek Apartments, a 152-unit multifamily property located at 5000 Western Avenue in Knoxville, Tennessee, was financed at $4.72 million.

Financing for both of these properties was based on a 10-year term and a 30-year amortization schedule. NorthMarq arranged this financing for the borrower through its seller-servicer relationship with Freddie Mac.